In a startling revelation with significant implications for global financial markets, U.S. Federal Reserve Chair Jerome Powell stated that the Department of Justice is threatening a criminal indictment against the central bank. The announcement, made on January 12, 2026, sent immediate shockwaves through the financial sector.
U.S. Developments and Global Repercussions
The potential indictment of the Federal Reserve represents an unprecedented legal challenge to the institution's independence and operations. Concurrently, former President Donald Trump commented on international relations, suggesting he believes Iran is "tired of being beat up by the United States" and has proposed negotiations. These U.S. developments have direct consequences for Canada, given the deeply intertwined economies and shared border.
In related financial news, the U.S. dollar fell sharply against the euro and Swiss franc following Powell's disclosure of the indictment threat. Investor confidence was further rattled by Trump's proposed plan to cap credit card rates, causing financial sector stocks to decline.
Major Headlines Across Canada
Domestically, several significant stories are unfolding. In Toronto, the TTC reported no service on the Finch West LRT due to switch issues, disrupting commuter travel. In Vancouver, an "ICE Out" protest was held at the U.S. Consulate, reflecting ongoing political activism.
Public safety concerns are prominent. The Fraser Valley Regional District issued an evacuation alert near the Chilliwack River. In Ottawa, more snow is expected Monday, while Edmonton enacted a residential and industrial parking ban starting at 7 a.m. the same day. Several Maritime schools announced closures for Monday due to weather.
Notable Canadian Achievements and Incidents
On a positive note, a Canadian ice master made Olympic history by creating the Games' first indoor temporary speedskating rink. In sports, Knapp and Campbell were crowned provincial curling champions, with the Highland Curling Club completing a sweep.
Tragically, an 18-year-old died after a single-vehicle crash in Moncton. In Ontario, a senior was charged with drug-impaired driving at a northern RIDE check, and OPP conducted a large drug and firearms bust, uncovering weapons, cash, and a stolen SUV.
Community Actions and Political Movements
Canadian communities are actively engaged in global issues. Iranian-Canadian communities gathered in support of protests in Iran, with demonstrations at the Manitoba legislature and in Saskatchewan, where chants for "Freedom for Iran" were heard.
In politics, former Bank of Canada Governor Mark Carney is set to visit China as Canada seeks to reduce its economic dependence on the United States. The Finance Minister is in the U.S. to discuss trade and critical minerals with G7 counterparts.
These events, from the potential criminal proceedings against the U.S. central bank to local Canadian issues, paint a picture of a dynamic and interconnected North American landscape facing legal, economic, and social challenges as 2026 begins.
